net assets


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Net assets

The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand.

Net Assets

In accounting, the value of a company's total assets less its total liabilities and intangible assets. Put another way, the book value is the shareholders' equity, or how much the company would be worth if it paid of all of its debts and liquidated immediately.

net assets

net assets

the combined amount of a company's FIXED ASSETS and WORKING CAPITAL (net current assets) as recorded in the company's BALANCE SHEET. The book value of a company's net assets provides a rough guide to the value of the company's resources being used to generate profit. Compare TOTAL ASSETS.
References in periodicals archive ?
Since most businesses, including metalcasters, have total value in excess of their net assets, this approach normally is used only in situations where the business is losing money or its earnings do not support its net assets.
One organization has an ongoing economic interest in the net assets of the other.
Investment income (interest and dividends) is recognized as revenue in the period it is earned and gains and losses are recognized as changes in net assets in the accounting periods in which they occur.
The proposal requires not-forprofit organizations to report the amounts of their total assets, liabilities and net assets in a statement of financial position; the changes in their net assets in a statement of activities; as well as the changes in their cash and cash equivalents in a statement of cash flows.
The typical payout period for a practice sale always has been roughly five years, usually without interest, and the thumb rule price has stayed close to one year's fees, plus net assets.